| Porter Hypothesis |
Article Index for Porter |
Limousines in Porter |
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Information AboutPorter Hypothesis |
| CATEGORIES ABOUT PORTER HYPOTHESIS | |
| marketing | |
| environmental economics | |
| SHOPPER'S DELIGHT | |
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According to this hypothesis, strict environmental regulation triggers the discovery and introduction of cleaner technologies and environmental improvements, the innovation effect, making production processes and products more efficient. The cost savings that can be achieved are sufficient to overcompensate for both the compliance costs directly attributed to new regulations and the innovation costs. In the First Mover Advantage , a company is able to exploit innovation by Learning Curve effects or Patent ing and attains a dominating competitive position compared to companies in countries where environmental regulations were enforced much later. The Porter hypothesis has been applied to REACH . In one conclusion {Link without Title} companies that adopt a Cost Leadership Business Strategy and have a relatively small product portfolio will fare better than companies that compete by Product Differentiation and have a larger number of chemicals that require regulation. REFERENCES
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